Ted and Tiffany are meeting Mitch and Amber at the Green Turtle Club later in the evening. Wanting to set some limits on what could be an
expensive evening, Ted stops at the ATM and uses his credit card to get
a cash advance. When the two couples meet for dinner, Tiffany tells
Amber that she is going to splurge and get lobster because Ted is rolling
in cash. Mitch overhears this and begins to laugh at Ted for making such
a financial blunder. Ted argues that Mitch is blind to the convenience
and control offered by cash advances, as research shows that people tend
to spend more when using credit cards. Tiffany and Amber ask you to
determine who is right, but you must thoroughly defend your answer to
settle the argument.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?